Penny stocks are stocks that cost less than $5 to buy and sell. These stocks are available online through discount stockbrokers. The advantage of penny stocks(http://www.affordablestock.com) is that they have lower prices than regular stocks, making it easy to own many of them. Buying penny stocks through online discount stockbrokers isn't difficult, but it can be risky.

Penny stocks are stocks that cost less than $5 to buy and sell. These stocks are available online through discount stockbrokers.

In the United States of America, a penny stock(http://www.affordablestock.com)penny stock, also known as a micro cap equity, refers to a share in a company which trades for less than $5.00

Penny stocks(www.affordablestock.com) work just like any other stock except that there are some differences you should be aware of. The definition of a penny stock varies depending on who you ask. Some consider any stock trading under $5 to be a penny stock. Others consider any stock trading under $1 a penny stock. These stocks are often traded off of the major exchanges and are bought/sold as Pink Sheets or on the Bulletin Boards. There are large risks associated with speculation on penny stocks. These stocks can be easily manipulated by large investors including hedge funds. The bid-ask spread can be substantial and serve as a significant barrier to making profits. Also, the lack of liquidity can limit your ability to trade in and out of your investment and cause sudden price fluctuations